SPIKES Options Launched on MIAX
MIAX Options Executes Strategy to Transform Market as First True Competitor in Volatility Space
PRINCETON, N.J. – February 21, 2019 – MIAX Options® on Tuesday began its first day of volatility options trading on the SPIKES™ Index (Ticker: SPIKE), an index designed with a fully-transparent process featuring pinpoint accuracy and radically faster dissemination.
For more information on SPIKES, visit: https://www.miaxoptions.com/spikes.
SPIKES is a measure of the expected 30-day volatility in the SPDR® S&P 500® ETF (SPY), the most actively-traded exchange-traded fund in the world, and was developed by T3 Index (“T3”), a firm that develops proprietary indexes. The SPIKES Index offers radically faster dissemination, publishing every 100 milliseconds as opposed to every 15 seconds for the VIX Index and SPIKES will be offered at a lower cost.
Citadel Securities is the specialist in SPIKES, serving as the Primary Lead Market Maker, providing two-sided liquidity in all SPIKES options.
In connection with the T3 partnership, Miami International Holdings, Inc. (MIH), the parent holding company of MIAX Options has obtained a 20 year exclusive, worldwide license to develop exchange-traded products based on T3’s SPIKES and other indices for all of the Company’s exchanges, as well as a minority ownership interest in T3.
By marrying the Company’s best-in-class trading technology with T3’s proprietary IP and expertise in the volatility space, the Company envisions MIAX Options becoming a volatility product powerhouse. Additionally, the T3 partnership presents the Company with a very unique opportunity to develop volatility products based on SPY, designed specifically to compete head-to-head against Cboe’s proprietary VIX product.
If approved by the SEC, it would be the 15th or 16th US stock exchange.
Customers in OTC interest rate derivatives clearing increased by 50% in the last six months.
Non-volume related revenue was 47% of total group proceeds.
The shorter contract will allow management of exposures for interest rate and curve shape moves.
The extended trading phase will enable transactions at an already-established closing price.